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A credit note is issued in various situations to correct a mistake , such as when (1) an invoice amount is overstated , (2) correct discount rate is not applied, (3) goods spoil within guaranty period , or (4) they do not meet the buyer's specifications and are returned. Also called credit memo .

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A credit note is issued in various situations to correct a mistake , such as when (1) an invoice amount is overstated , (2) correct discount rate is not applied, (3) goods spoil within guaranty period , or (4) they do not meet the buyer's specifications and are returned. Also called credit memo .